Snap's Slowest Growth in Over a Year Amid Fierce Social Media Competition

As of August 5th, 2025, Snap, the parent company of the popular social media platform Snapchat, has reported its slowest quarterly revenue growth in over a year. The company's second-quarter revenue rose 8.1% to $1.34 billion, largely in line with estimates, but a significant slowdown from the stellar performances of its larger rivals like Meta Platforms and Reddit.

The slowdown in Snap's growth is a sign of the fierce competition it is facing in the social media landscape. The company's results were impacted by changes to its ad platform, the timing of Ramadan, and the termination of a duty-free import loophole in the U.S. Snap has since reverted the ad platform change that unintentionally allowed some ads to run at much lower prices, which had hurt revenue growth in the reported quarter.

Despite the challenges, Snap's subscription service Snapchat+ remained a key driver for diversifying revenue beyond advertising. The service saw a 42% increase in subscribers to nearly 16 million for the quarter ended June 30th. Additionally, the company's expanded roll-out of its new ad format, Sponsored Snaps, across the U.S. and several other global regions is helping to drive more user actions and deeper engagement with ad content.

Looking ahead, Snap is forecasting third-quarter revenue between $1.48 billion and $1.51 billion, compared with analysts' average estimate of $1.48 billion. The company also expects quarterly adjusted earnings before interest, taxes, depreciation, and amortization to be between $110 million and $135 million, above estimates of $111.9 million.